Netflix (NFLX) closed at $1,275.31 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%.
The stock of internet video service has risen by 5.32% in the past month, leading the Consumer Discretionary sector's gain of 5.29% and the S&P 500's gain of 3.94%.
The upcoming earnings release of Netflix will be of great interest to investors. The company's earnings report is expected on July 17, 2025. The company is forecasted to report an EPS of $7.05, showcasing a 44.47% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $11.05 billion, indicating a 15.59% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $25.32 per share and a revenue of $44.47 billion, demonstrating changes of +27.69% and +14.01%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Netflix is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Netflix is at present trading with a Forward P/E ratio of 50.93. For comparison, its industry has an average Forward P/E of 15.05, which means Netflix is trading at a premium to the group.
Investors should also note that NFLX has a PEG ratio of 2.34 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Broadcast Radio and Television industry was having an average PEG ratio of 1.23.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Netflix, Inc. (NFLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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